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Statutory disclosures

Policies, codes and the escalation path.

Published under the Reserve Bank of India's Master Direction for Non-Banking Financial Companies and the Reserve Bank – Integrated Ombudsman Scheme, 2021. Board-approved and reviewed annually.

Draft for compliance review. Figures, names, addresses and registration numbers throughout are placeholders and must be replaced with Kovid Finance's actual particulars before publication.

KYC and Anti-Money Laundering Policy

Version 3.0Approved TBCNext review TBC

Framed under the Prevention of Money-Laundering Act, 2002, the rules made under it, and the RBI's Master Direction – Know Your Customer, 2016, as amended.

  1. Customer Acceptance Policy

    No account is opened in an anonymous or fictitious name, or where the identity of the customer cannot be verified, or where the documents furnished are found to be non-genuine or inadequate. No relationship is established with any person or entity named in a sanctions list notified by the Government of India or the United Nations Security Council.

  2. Customer Identification Procedure

    Identity and address are verified using an Officially Valid Document at onboarding, at the time of any significant transaction, and whenever there is a doubt about the adequacy of previously obtained information.

    • Individuals: PAN, plus an Officially Valid Document for identity and address
    • Companies: certificate of incorporation, memorandum and articles, board resolution, and the identification of beneficial owners
    • Partnerships and LLPs: registration certificate, partnership deed, and the identification of partners and beneficial owners
    • Beneficial ownership is determined in accordance with the thresholds prescribed under the PML Rules

  3. Risk categorisation

    Every customer is categorised as low, medium or high risk on the basis of identity, social and financial status, nature of business activity, and the location of the customer and their clients. Categorisation is reviewed periodically.

    Low riskReview every 10 years
    Medium riskReview every 8 years
    High riskReview every 2 years

  4. Monitoring of transactions

    Transactions are monitored on an ongoing basis against the customer's profile and expected activity. Enhanced due diligence is applied to high-risk customers, politically exposed persons, and any transaction that has no apparent economic rationale.

  5. Reporting

    Cash Transaction Reports, Suspicious Transaction Reports and all other prescribed reports are furnished to the Financial Intelligence Unit – India within the timelines laid down under the PML Rules. A Principal Officer and a Designated Director are appointed and their particulars are registered with FIU-IND.

  6. Record keeping

    Records of identity and of all transactions are preserved for five years from the date of the transaction or from the date of cessation of the relationship, as applicable, and are made available to competent authorities on demand.

  7. Training and audit

    Staff receive training on this policy at induction and annually thereafter. Compliance with this policy is subject to independent internal audit, whose findings are placed before the Board.

Issued by

Kovid Finance Private Limited · CIN U67120RJ1993PTC007199 · RBI Certificate of Registration B-10.00134 · Registered office: 4th Floor, City Mall, Kota, Rajasthan 324007. This document is approved by the Board of Directors and supersedes all previous versions.